Byline: Braden Harper/Managing Editor
The Oklahoma Tax Commission (OTC) does not participate in the negotiation of tobacco tax compacts but does work with wholesalers and compacting tribes to administer the compacts. When a tribe’s compact expires, the OTC informs wholesalers that the tribe’s authorized retailers are no longer eligible to purchase cigarette products bearing the Unity (tribal) stamp and tobacco product sales must be made at the regular state tax rate.
On March 31, 2025, when the Muscogee (Creek) Nation compact expired, the OTC notified wholesalers of that expiration. As of April 1, 2025, cigarette and tobacco sales to the tribe’s retailers will be subject to the regular state tax rate. Because rebates to the tribes are based on compact-rate sales, no new compact rebates will be available to be paid the tribe for sales on or after April 1, 2025.
The OTC will promptly administer the terms of any new agreement if the State of Oklahoma and the Muscogee (Creek) Nation enter a new cigarette and tobacco compact.
MVSKOKE RESERVATION – A Mvskoke citizen smoke shop owner recently provided Mvskoke Media a copy of an email that appears to be from the Oklahoma Tax Commission to an unnamed tobacco wholesaler. The email contains a signature block for Jondra Rupp, Tobacco Excise Tax Senior Specialist at the OTC. The email states:
The following tribe’s tobacco compact extensions have expired effective March 31st, 2025. Muscogee Creek Nation, Osage Nation, Quapaw Tribe of Oklahoma, and Seminole Nation. All tobacco sales to these tribes will be at full rate and cigarette sales should have the green stamp applied to all packs as of April 1, 2025 until further notice.
Mvskoke Media has contacted the OTC to confirm the content of the email but has not received a response as of press time.
Ashley Wolf Voice, Mvskoke citizen smoke shop owner, shared how her business has been impacted by this email. Wolf Voice stated:
We were contacted by our wholesaler Monday afternoon about the tribe’s tobacco compact extension that will expire effective March 31, 2025, the future orders will be stamped green, which means full rate, non-tribal, 100% state tobacco excise tax will be applied to each pack. The tribe will receive 0% of the state tobacco excise tax. For the past nine years the tribe has been at the 50% rate, the state has used the state portion of collected compact taxes in accord with Oklahoma law. The Nation has retained $2.50 of the tribal portion per carton for all cigarettes sold and distributed the remaining tribal portion at its exclusive discretion. Tobacco has produced hundreds of millions for the tribe since the early Nineteen Eighties.
Mvskoke citizen Darrell Chissoe has operated his smoke shop in south Tulsa for 30 years. Chissoe also issued a statement on the matter:
The impact of this no tobacco compact is far reaching. I have longtime valuable employees with young families to raise, that depend greatly on their income who will suffer severe loss. The business will not be sustainable with this loss of tax revenue. This loss will cause lay-offs, and closure of a 35 year-long business. The landowners will no longer have their rent incomes. Muscogee Creek Nation will suffer extreme economic hardship with this loss, in the millions generated annually by our smoke shop revenue for our Muscogee people.
Mvskoke Media contacted the MCN Executive branch on the status of the tobacco compact. They issued the following statement:
We are still actively engaged in talks with the state seeking a resolution to this matter, and we remain committed to doing everything we can to take care of our Nation’s future, our business owners, and the state’s economy. We are staying in communication with our smoke shop owners and communities, along with our legal team, so that everyone has the information they need as we proceed.
Mvskoke Media will have ongoing coverage of this developing story.
